Kazakhstan oil output to fall to 1.706 million barrels in October
International Business News – On September 5, the OPEC+ Joint Ministerial Oversight Committee meeting and the 32nd Ministerial Meeting were held by videoconference. Kazakhstan was represented at the meeting by Deputy Minister of Energy Asset Magauov.
During the videoconference, the participants discussed the cartel members’ compliance with their oil production agreement obligations in August and decided on the production for October 2022. OPEC+ members agreed on a small production cut of 100,000 barrels per day in October to bring OPEC+ oil supplies back to the August level. According to the organization’s website, about 100 million barrels of oil are produced daily. The next meeting will be held on Oct. 5. OPEC+ said it will hold another ministerial meeting at any time if it needs to address market developments.
The news said that oil production of OPEC+ members in October subsets needs to be restored to the production level of August 2022, after the plan to increase production by 100,000 barrels per day was only for September 2022. As a result, Kazakhstan’s oil production in October will be reduced to 1.706 million bpd. in September, Kazakhstan’s oil production was 1.71 million bpd.
The decision of the meeting was taken in view of the negative impact of oil price volatility and declining liquidity on the current oil market, as well as the need to maintain market stability and its effective functioning.
As a result of the relevant news, international oil prices pulled up in the short term and have since narrowed their gains. The U.S. crude oil (WTI crude) October contract closed up 2.24% at $88.82/barrel and the Brent crude oil November contract closed up 2.38% at $95.23/barrel.
The OPEC+ Supervisory Committee consists of eight of the 23 OPEC+ members, namely Kazakhstan, Russia, Saudi Arabia, the United Arab Emirates, Iraq, Kuwait, Algeria and Venezuela.